Which of the following is(are)correct statements about the buyer of a futures contract?
I.The contract buyer is short on the position.
II.The contract buyer wants the price of the item to increase.
III.The buyer can liquidate the position with an offsetting transaction.
IV.The majority of the buyers actually take delivery of the item.
A)II only
B)I and II only
C)I and IV only
D)II and III only

Question

Quizplus · Accepted Answer

I. The contract buyer is long on the position.
II. The contract buyer wants the price of the item to increase.
III. The buyer can liquidate the position with an offsetting transaction.
IV. The majority of the buyers do not take delivery of the item, but rather close out their position before the expiration date.

Which of the Following Is(are)correct Statements About the Buyer of a Futures